Accounting treantment is the set of rules that lays down how to treat an account and how to handle a particular transaction. The repayment shall be done in 10 instalments, with one instalment every month. Statement of stockholders equity Statement of stockholders equity is the summary of the changes in shareholder equity for the accounting period. Thus, their business need not be wound up for paying debts. This is the first mistake that might land you in some serious trouble with the Internal Revenue Service IRS. Accrual concept states that a economic event should be recorded in the period